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Brussels gives the green light to Spain’s recovery plan

Posted: Wednesday June 16 2021 5:24 PM

The European Commission gives official authorization to Spain to receive the first tranche of 140,000 million euros in European aid. A staging at the highest level, because it is the president of the organization, Ursula Von der Leyen, who goes to Spain to support the project and to deliver to the President of the Government, Pedro Sánchez, the assessment made by the community executive of the Recovery, Transformation and Resilience Plan of Spain with an approved.

In this way, Sánchez plays with Von der Leyen in a joint appearance at the headquarters of Red Eléctrica Española. For Sánchez, the fact that Spain is one of the first countries to receive the green light shows that “things have been done well”: “It shows that the Spanish executive has worked hard and that things have been good do. “

The approval of this plan is, initially, a guarantee which will allow the Government to receive an advance of nearly 9,000 million euros of these funds. The forecast they are dealing with from Brussels is that investments with the funds and reforms will be able to boost Spanish GDP growth by an additional 2.5% in the years to come.

Deadlines to be respected

From this moment, a series of deadlines are established for receiving the funds. The first thing is that ECOFIN approves on July 13 the advance payment of 9000 million which would arrive at the end of this month. The next installment would take place at the end of the year, with 10,000 million.

In the spring of 2022, another payment of over $ 12,000 million would arrive. And throughout this process, it will be the Government that will have to request the payments (not the July pre-financing) when it respects the commitments and the reforms. The Commission will analyze them within a maximum of three months.

Brussels highlights the reform of work and pensions

Among the measures included in the Spanish recovery plan, the European Commission has highlighted the labor and pension reforms that it considers “critical, important and difficult”. “It is true that the final design is not finished, but for good reason, the negotiation with the social actors. The Commission considers that it is good, that the commitment is critical”, they underline from Brussels.

In addition, they clarified that these reforms will not be taken into account until next year’s payment, so there is still time to implement them.

The measures aimed at ending the temporary and interim status in public administrations also stand out.

Portugal also has CE approval

The first plan approved by the EC was that of Portugal. This country has been granted a budget of 16,600 million euros, which, as Portuguese Prime Minister Antonio Costa reminds us, “it is not a blank check, but a commitment” and also a ” strategic bet “to overcome the COVID-19 derivative crisis[FEMININE[FEMININE

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